• News
  • SAN DIEGO
  • Finance

Dexcom gains FDA approval; stocks rise

Share prices in San Diego's Dexcom Inc. rose nearly 6 percent in after-hours trading Tuesday after the company announced it had received FDA approval for a new system aimed at providing diabetic patients and their doctors with real-time information about their sugar levels.

Dexcom (Nasdaq: DXCM) shares, which tumbled sharply during March and April, have been moving higher over the past month, partly spurred by MSNBC and TheStreet.com stock commentator Jim Cramer, who said that the company's continuous glucose monitoring systems — which monitor the sugars in the body without the need to draw blood — were a "disruptive technology" that could rev up its cash flow within the next year.

The newest system, the Dexcom G4 Platinum Professional CGM, can alert users when their glucose levels are rising or falling to dangerous levels and can also provide doctors information about how changes in eating habits, exercise, stress and medications are affecting the glucose levels.

Lori Laffel, chief of the pediatric, adolescent and young adult section of the Joslin Diabetes Center in Boston, said the system "provides health care practitioners and patients the necessary data to plan treatment and lifestyle decisions to keep glucose at safe levels, in the reference range found in persons without diabetes.”

The company announced the FDA approval shortly after the stock market closed at 4 p.m. Three hours later, the price had risen from $32.58 to $34.50, although it remains well below the $49.13 high it achieved in early March.

Cramer blames the subsequent drop-off on investors' concerns about the company's rising expenses, but he said that one reason for the rise is that the company has been building up its sales force, which should help it build revenues.

User Response
0 UserComments

Dexcom Inc.

Company Website

5555 Oberlin Dr.
San Diego, CA 92121

Dexcom Inc. Executive(s):

Terrance Gregg

  • Chief Executive Officer, Director

Kevin Sayer

  • Director, President

Patrick Murphy

  • Assist. General Counsel